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Question : Which of the following transactions will not result into flow of cash?

Option 1: issue of equity shares of Rs. 4,00,000.

Option 2: Purchase of Furniture of Rs. 3,50,000

Option 3: Redemption of 9% Debentures of Rs. 7,00,000.

Option 4: Cash deposited into bank Rs. 30,000


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Cash deposited into bank Rs. 30,000


Solution : Answer = Cash deposited into bank Rs. 30,000

Cash deposited into the bank does not result in a cash outflow because it represents cash being transferred from one account (cash in hand) to another (bank account). Therefore, it does not affect the overall cash position and is not considered a cash flow transaction.
Hence, the correct option is 4.

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